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Technology Super Cycle Redux: How Unicorns Drive Innovation

Software has infinite capabilities because it consumes neither time or space. In 2017 I published one of my most important investment strategy pieces that I called The Technology Super Cycle.You can see a 2018 video and article version via that link, where I answer this burning puzzle: why is inflation absent and productivity "hidden?"The two main solutions to that puzzle are still very relevant to what you see happening in the most important sector of the economy.In the thesis, I said you had to be a buyer of NVIDIA NVDA for the future they were building with GPU platforms and CUDA stacks of software capabilities that digital engineers, data analysts, and scientists had to have.And this was before I'd ever heard of Cathie Wood and her similar takes on long-tail "disruptive innovation."But lately, as I immerse myself in the exploding world of private FinTech companies, I have begun to see another driving force."Where do unicorns come from? Imagine 10,000 VCs chasing twice as many fintech companies."That's what I proposed in my Cook's Kitchen from two weeks ago...Unicorn Stampede: How FinTech Innovation and VC Warchests Fuel MarketsIn the video that accompanies this article, I review the Pinterest PINS and PayPal PYPL unfolding drama we discussed last week.PINS shares today are filling the October 2020 gap up from $45 on the deal rumors getting scuttled. In the video, I tell you who a big seller has been. Meanwhile PYPL continues to plummet into my $220-240 "buy zone."I also reiterate my "buy zone" for Shopify SHOP inside $1240-80, with starter positions recommended under $1350 ahead of their earnings report on Thursday.Call With CookerIf you came here from the YouTube link, I have your code/instructions to enter the "Call with Cooker" drawing: #TechSuperCycleJust go to Twitter and do the following...1. Follow me @KevinBCook2. Like and ReTweet my pinned Tweet with the NVIDIA graphicSpeaking of Twitter TWTR, in a very meta-social event, I attended this morning's Space chat with the CFO, Ned Segal. Dude was super chill under pressure from annoying analysts who kept trying to get him to parse his KPIs for the mDAU metric (monetizable daily active users).Segal is a model for any corporate executive doing media interviews. He just naturally calms the room and the fire-breathers by never getting defensive or frustrated and just explaining his goals while trying to answer the questions.And apparently in his CNBC interview this morning, he said "Bitcoin is going to be a great way for us to facilitate commerce on Twitter." That's very interesting.I was on another Twitter Space last night where a bunch of "new money/digital gold" theorists were debating @Jack's recent post about "hyper-inflation is coming."When you go to my Twitter feed, you'll see those Space posts and you can check out the other things I've posted on Segal and FinTech, including the link to the Plaid report.Thanks for joining me in the Kitchen!Disclosure: I own shares of NVDA, PINS, and SQ for the Zacks TAZR Trader portfolio. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report Pinterest, Inc. (PINS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks42 min. ago Related News

A Big Day for Tech Earnings

A quick read-through of the top tech earnings from yesterday. We generally think of the big tech names as growth stocks, and they are, going by the way they continue grow year upon year. But when big tech is relatively undervalued, it’s a really great time to invest. Because this segment really offers the quality of earnings that value investors are looking for.The best thing about tech is the way it helps increase efficiencies across other sectors, meaning that it doesn’t just grow because of dynamics within the industry but also as a result of overall economic growth across industries. And that is why I have always been in favor of a tech weighting in the portfolio.Over time, tech stocks tend to appreciate really well. In the last 20 years, the tech sector gained 545.4% compared to 383.8% for the S&P 500. It also outgrew the S&P in the last 10 years at 382.4%/310.3%. The differential only increased in recent history: 178.5% to the S&P’s 125.0% in the last five years, 118.6% to 78.2% in the last three years, and so on.This quarter, it was Microsoft’s Nadella that also mentioned how tech tends to be “deflationary”: “Digital technology is a deflationary force in an inflationary economy. Businesses – small and large – can improve productivity and the affordability of their products and services by building tech intensity.” The idea being that since technology helps increase efficiencies, you would need less of the more expensive resources (because of inflation), so you wouldn’t need to pass on these costs to the consumer.Another factor that’s often overlooked is the fact that tech companies tend to return a ton of cash to investors. Not all tech companies will pay dividends of course, since there is tremendous scope for higher returns by reinvesting the cash in the business. But almost all tech companies buy back a lot of shares. That’s because they tend to hire more engineering talent that’s often paid with stock-based compensation. Since this increases the share count, most tech companies regularly buy back a ton of shares.  So there are many good reasons to invest in tech, especially the big ones that just reported earnings results-Microsoft Corp. MSFTMicrosoft topped earnings estimates by 10.2% and revenue estimates by 3.3%.Strength was broad-based across segments and product lines: the largest segment Intelligent Cloud grew 31% with the server side jumping 35% and Azure and other services up 50%; Productivity and Business Processes grew 22% with office commercial and consumer both up double-digits, LinkedIn up 42% and Dynamics up 31%; More Personal Computing increased 12% with the Windows side growing low double-digits, search and advertising up 40%, Xbox content and services a seasonally soft 2% while the Surface category declined.The results display the success of the company’s cloud strategy, its clout at legacy customers who are leveraging its hybrid system to jump to the cloud, the continued strength in digitization even as markets open up, a strong job market that’s pushing LinkedIn revenue, the platform approach that continues to pull more users into its productivity ecosystem and strong AI tools that helps it create more sticky platforms and sell ads. The Zacks Rank #2 (Buy) company looks very strong and well positioned to make the most of ongoing digitization and other trends with growth rates likely to remain elevated as it continues to take share in the cloud.Alphabet Inc. GOOGLAlphabet reported a revenue beat of 3.5% and earnings beat of 21.0%.The company’s 45% cloud revenue growth was almost as strong as Microsoft’s, albeit off a much smaller base. Alphabet continues to add to its capabilities and since this is a very big opportunity with not necessarily a single winner, we should expect continued growth here.The company’s bread and butter is of course search advertising, which remains robust as some areas of the economy (like travel and retail) that were hit by the pandemic last year comes back online. Apple’s privacy initiative has impacted the quarter’s results, but there are many other offsetting factors, not the least of which is the fact that some ad spending likely moved to more easily measurable Google platforms from Apple platforms. Even YouTube, which is particularly susceptible to Apple’s changes, grew 43% on the year on the back of more than 50 million music and premium subscribers. That has to count for something!The Zacks Rank #2 company grows like a youngster but spills cash like a granddaddy. That situation is unlikely to change at any time in the foreseeable future.Advanced Micro Devices, Inc. AMDAMD’s revenue beat the Zacks Consensus Estimate by 4.7% while its earnings beat by 10.6%.It was a stupendous quarter from AMD, which grew revenue 54% (the fifth quarter in a row of 50%+ increases), gross profit 70%, operating income 111% and EPS 134%. Both reporting segments grew strong double-digits: Computing and Graphics up 44% and the slightly smaller Enterprise, embedded, and semi-custom segment up 69%. Data center sales more than doubled. AMD’s premium business is picking up across consumer, gaming and commercial markets and high-volume deployments across media and entertainment, engineering, architecture, and automotive verticals continues. The positive mix shift supports stronger margins.The Zacks Rank #2 company should continue growing strongly as it enjoys a design edge that it wrested from Intel, and that is very hard to outdo in a few years’ time. So it’s easy to see why revenue growth guidance for the year was raised from 60% to 65% with gross margin remaining at the 48% level reached in Q3.Other tech companies that also reported yesterday were-#2 ranked Texas Instruments Inc. TXN, which reported in-line earnings on revenue that missed by 1.1%.#2 ranked Teradyne, Inc. TER, which reported an earnings beat of 9.7% on revenue that was essentially in line with the Zacks Consensus Estimate.#3 (Hold) ranked F5 Networks, Inc. FFIV, which reported revenue that exceeded the Zacks Consensus Estimate by about 1.2% while earnings beat by 8.7%.NCR Corp. NCR was another #3 ranked company with a mixed quarter. Its earnings beat of 4.6% came on revenue that missed by 4.8%.Twitter TWTR is perhaps the hottest of the #3 ranked tech stocks that reported an unexciting quarter. The social media company that prefers the Taliban to Trump missed earnings by 417.7% on revenue that missed by 0.3%.One-Month Price PerformanceImage Source: Zacks Investment Research Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Instruments Incorporated (TXN): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NCR Corporation (NCR): Free Stock Analysis Report F5 Networks, Inc. (FFIV): Free Stock Analysis Report Teradyne, Inc. (TER): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks42 min. ago Related News

Wait Until All These New Homebuyers See Their Property Taxes Go Up Next Year

Wait Until All These New Homebuyers See Their Property Taxes Go Up Next Year To add another chapter to the "our economy is a ponzi scheme bubble that is bound to eventually burst" argument, those who went out and overpaid for property this year may wind up with a hangover in the form up skyrocketing property taxes. We all know that higher real estate prices (hereinafter referred to as "a real estate bubble") are often praised by government and Fed officials as signs of progress for the economy. They're great news for those who already own property and terrible news for those looking to enter the market for the first time. But buyers in 2021 may face even more buyers remorse, on top of overpaying for property: they may soon find out that property taxes are going to increase, an article from The Motley Fool astutely noted this summer.  This once again makes an already-expensive house an additional burden by levying more costs in the form of taxes. Property taxes are determined by the assessed value of a home and multiplying it by your local municipality's tax rate.  Assessments can obviously rise in price as homes do, driving taxes higher.  Homeowners in 2021 are already starting to see these effects, the Fool article writes. An average property tax bill for a single family home went up from $3,561 to $3,719 in 2020, the report noted. Property taxes rose $323 billion, or 5.4%, in 2020, the report notes. It's not unreasonable to assume these taxes will continue to rise at this alarming clip for 2021, as the real estate market continued its "recovery" this year. While homeowners can appeal property tax assessments, the process "isn't easy".  "It's for this reason that homeowners are advised not to max out their budgets when purchasing property," the Fool article hilariously ends by saying. Perhaps someone can inform them that tapping out all lines of credit and maxing out one's budget is the American way...   Tyler Durden Wed, 10/27/2021 - 19:10.....»»

Category: blogSource: zerohedge3 hr. 26 min. ago Related News

: Inflation is turning into a headwind for these five publicly traded companies, analysis shows

Glyn Kirk/Agence France-Presse/Getty ImagesSophisticated algorithms, based on 25 macro-economic drivers used to calculate appropriate fair values for asset prices, have identified the top five publicly traded companies for which inflation is turning into a significant headwind. The companies are Regeneron Pharmaceuticals Inc. REGN; Centerspace CSR; SBA Communications Corp. SBAC; ResMed Inc. RMD; and DexCom Inc. DXCM, according to Colin Stewart, head of Americas for Quant Insight in New York, citing data as of Wednesday.The data incorporates moves in 2- to 10-year U.S. inflation expectations, using inflation swaps, to determine which companies stand the best chance of weathering a period of higher prices, by being able to pass that on to consumers. The five companies seen as getting helped the most by higher inflation acting as a tailwind are Endo International PLC ENDP; Boston Beer Co. SAM; Calavo Growers Inc. CVGW; Discovery Inc. DISCA; and SelectQuote Inc. SLQT, according to Quant Insight’s data.Higher inflation tends to provide a positive lift to stocks, until either it compresses profit margins and a company lacks the pricing power to make up for it, or markets expect interest-rate rises to put the brakes on economic growth. Bond markets worldwide are now factoring in the potential for a global rate-hiking cycle beginning next year, as evidenced by the pronounced flattening of curves across countries.“Markets, we feel, are hampered by the inability to mark to macro,” or trade at levels that accurately reflect the state of the economy, Stewart said by phone. “We put eyes on this very big blind spot for investors, by calculating all the factors that drive up asset prices across equities, ETFs, rates, commodities and crypto currencies.”A recent explosion of alternative data sources like Quant Insight, based in London and New York, is giving investors access to tools previously reserved for only hedge funds, with traditional money managers scouring the world for information that can give them an edge. Read: The explosion of ‘alternative’ data gives regular investors access to tools previously employed only by hedge fundsQuant Insight serves portfolio managers, traders, insurers and corporations. It was co-founded by former hedge-fund manager Mahmood Noorani and has a team of academic advisors that include astrophysics professor Michael Hobson of the University of Cambridge in the U.K. In March 2020, at the onset of the pandemic in the U.S., the firm predicted the S&P 500 Index SPX would bottom out on the 15th of that month — roughly a week sooner than the index actually did. Quant Insight isn’t currently giving a forecast for the S&P 500, saying the index is now trading “out of regime,” or for reasons that are outside of economic fundamentals, Stewart says. On Wednesday, the S&P 500 edged higher along with the Nasdaq Composite Index COMP as investors weighed earnings from tech stocks. Meanwhile, Dow industrials DJIA were under modest pressure in afternoon trade. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch3 hr. 54 min. ago Related News

Joe Biden promised more family and medical leave for US workers during his presidential campaign. Now Democrats are stripping the benefits from his signature social spending package.

Biden's big social-spending bill keeps getting smaller as centrists Joe Manchin and Kyrsten Sinema block most ways of paying for it. President Joe Biden. Chip Somodevilla/Getty Images Democrats are removing paid family and medical leave from the social spending package, according to Politico. It's yet another big cut to the bill, which is getting whittled down as negotiations with moderates continue. However, lawmakers and advocates say the fight to implement paid leave isn't over. Senate Democrats have decided to strip paid family and medical leave benefits from Biden's social spending package, Politico reporter Eleanor Mueller said on Wednesday. Sources told Mueller that attempts to water down the bill didn't work out. In recent weeks, Democrats have scrambled for new revenue sources to pay for the "Build Back Better" bill, which was initially targeted at $4 trillion and may end up at $1.5 trillion or smaller. Key centrist Sens. Joe Manchin and Kyrsten Sinema have variously opposed most of the new tax proposals that Democrats have suggested."It is still a little inconceivable to me that after the last 18 months - and everything we saw during the course of the pandemic - that we are hearing that Congress is going to leave paid leave for another day," Laura Narefsky, counsel on education and workplace justice at the National Women's Law Center (NWLC), told Insider.The family and medical leave benefits were a central focus of President Joe Biden during his 2020 campaign and, even if enacted, would leave Americans with some of the stingiest leave benefits in all the developed world, The New York Times' Upshot reported. The US is already an outlier when it comes to benefits. A report from the Organization for Economic Cooperation and Development (OECD) found that, out of 41 countries, the US was the only one not to mandate paid leave. The US also has no federal sick leave mandates."If the news reports are true, this is a devastating and incomprehensible blow to American families," Vicki Shabo, a paid leave expert at think tank New America, told Insider.She added: "This was a once in a generation opportunity to build on the Family and Medical Leave Act to finally bring the promise of paid leave to the US, to end its outlier status, and to make good on promises that the president ran on."Advocates for paid leave argue that it bolsters the economy, with an analysis from the University of Massachusetts Amherst finding that paid leave would increase Americans' incomes by $28.5 billion every year.Paid leave is among the latest of many cuts Democrats have reportedly made to appease Joe Manchin, including tuition-free community college and an expanded five-year child tax credit. But some lawmakers have been clear that they will keep fighting for all of their priorities until they see the final version of the bill."Until the bill is printed, I will continue working to include paid leave in the Build Back Better plan," New York Sen. Kirsten Gillibrand, who has been a leading advocate for paid leave, said in a statement on Wednesday.Other lawmakers have been making similar statements with regards to wanting to see the final bill text. Michigan Rep. Andy Levin, for example, told Insider during a Tuesday interview that he will keep fighting to get free community college in the bill "right up to the closing whistle."Democrats were hoping to pass the "Build Back Better" bill - along with a $1 trillion bipartisan infrastructure bill - this week."We cannot recover holistically unless you provide the full range of supports that working families need," Narefsky said. "It is so short-sighted to think that because we are trimming down some abstract top-line number, that that is the end goal. Paid family and medical leave is a benefit that touches everyone."This story is developing. Please check back for updates. Read the original article on Business Insider.....»»

Category: topSource: businessinsider5 hr. 10 min. ago Related News

Why CBRE Group (CBRE) is a Top Stock for the Long-Term

The Zacks Focus List offers investors a way to easily find top-rated stocks and build a winning investment portfolio. Here's why you should take advantage. Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.Utilizing the power of earnings estimate revisions is when the Zacks Rank joins the party. A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio.There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.Focus List Spotlight: CBRE Group (CBRE)Headquartered in Dallas, TX, CBRE Group, Inc. is a commercial real estate services and investment firm, offering a wide range of services to tenants, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estates in all major metropolitan areas across the globe. The services include facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. With more than 100,000 employees the company serves clients in more than 100 countries.Since being added to the Focus List on March 13, 2017 at $36.40 per share, shares of CBRE have increased 187.34% to $104.21. The stock is currently a #2 (Buy) on the Zacks Rank.One analysts revised their earnings estimate upwards in the last 60 days for fiscal 2021. The Zacks Consensus Estimate has increased $0.03 to $4.93. CBRE boasts an average earnings surprise of 53.5%.Additionally, CBRE's earnings are expected to grow 50.8% for the current fiscal year.Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >> Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CBRE Group, Inc. (CBRE): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks5 hr. 54 min. ago Related News

Why Huntington Ingalls (HII) is a Top Stock for the Long-Term

Finding strong, market-beating stocks with a positive earnings outlook becomes easier with the Focus List, a top feature of the Zacks Premium portfolio service. Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.Breaking Down the Zacks Focus ListBuilding an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.Focus List Spotlight: Huntington Ingalls (HII)Based in Newport News, VA, Huntington Ingalls Industries designs, builds and maintains nuclear-powered ships such as aircraft carriers and submarines, and non-nuclear ships, such as surface combatants, expeditionary warfare/amphibious assault and coastal defense surface ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe.On May 9, 2016, HII was added to the Focus List at $155.20 per share. Shares have increased 31.66% to $205.11 since then, and the company is a #2 (Buy) on the Zacks Rank.One analysts revised their earnings estimate upwards in the last 60 days for fiscal 2021. The Zacks Consensus Estimate has increased $0.24 to $13.56. HII boasts an average earnings surprise of 25.5%.Additionally, HII's earnings are expected to grow 35.6% for the current fiscal year.Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >> Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks5 hr. 54 min. ago Related News

Billionaires To Fund "Anti-Disinformation" Media Companies To "Restore Social Trust"

Billionaires To Fund "Anti-Disinformation" Media Companies To "Restore Social Trust" Authored by Katabella Roberts via The Epoch Times, Billionaires Reid Hoffman and George Soros are backing a public benefit corporation that will provide funding to new media companies aimed at tackling disinformation online and restoring social trust. Good Information Inc. launched on Tuesday and is being led by former Democratic strategist Tara McGowan who previously ran a progressive non-profit called ACRONYM, which was backed by LinkedIn founder Hoffman. Others contributing to the multi-million seed effort include investors Ken and Jen Duda, and Incite Ventures. In a press release on Oct. 26, Good Information Inc said its aim is to “restore social trust” and “strengthen democracy” by “investing in solutions that counter disinformation and increase the flow of good information online.” “America is currently in the throes of a disinformation epidemic that is threatening public health, social trust, and democracy around the world. Good Information Inc. believes there is un-met audience demand for fact-based information, especially in local markets that have lost many of their legacy local news sources in recent years, and among audiences that are being left behind by evolving media business models,” the corporation said in a statement. Good Information Inc. will be investing in media outlets that provide customers with trusted and fact-based information, as well as local community news, particularly in markets where there are little to no local news outlets reaching online communities. The company said that an “increasingly decentralized media environment, anti-democracy forces, and networks of bad actors” have resulted in “dangerous consequences,” noting that 96 million Americans believe the election was stolen from former President Donald Trump, while 89 million Americans believe voter fraud is a major problem. Trump has maintained that there was “massive voter fraud” in the 2020 elections. “Good information that upholds the truth, common sense, and shared values of a society is the lifeblood of democracy, and orchestrated disinformation—fueled and amplified by bias-driven algorithms—is its greatest threat. The disinformation crisis we are facing in America today is increasing polarization and eroding our trust in each other, which is having a corrosive effect on our democracy, jeopardizing public health, and destabilizing our economy,” founder and CEO McGowan said in a statement. “This is no longer a political dispute about the truth, but the direct result of unregulated business models that are putting whole communities around the world at risk, and putting democracy around the world in peril.” McGowan’s former progressive non-profit, ACRONYM, ran one of the biggest digital campaigns—costing $100 million—aimed at convincing millions of Americans to vote against Donald Trump in the 2020 elections, Fast Company reports. One of the companies ACRONYM invested in, called Shadow, produced the vote tabulation app used in the Iowa caucuses and contributed to the delayed reporting of the results following a string of technical issues. McGowan later apologized for the incident, telling Axios that the Shadow team, “made an enormous mistake that has dire consequences in this election and so we want to own that.” As its first major investment, Good Information Inc. has officially acquired Courier Newsroom, a civic media company composed of eight state-based news outlets. Pat Kreitlow, who co-founded Courier’s Wisconsin news outlet UpNorthNews, said in a statement that the company is “extremely happy to be the first investment of Good Information’s portfolio.” “We are seeing unparalleled threats to our country’s democracy and a free press today—threats so grave that the long-running fight against misinformation seems almost quaint as we confront outright disinformation from people preying upon Americans fears and anxieties to push their own agenda or profit margins,” Kreitlow said. Tyler Durden Wed, 10/27/2021 - 15:46.....»»

Category: blogSource: zerohedge5 hr. 54 min. ago Related News

Tech Stocks Save The Day

In his Daily Market Notes report to investors, while commenting on tech stocks, Louis Navellier wrote: Q3 2021 hedge fund letters, conferences and more Our survey this week showed that a majority of investors believe inflation will be a significant headwind for the markets by year-end. This is a notable difference from our survey in […] In his Daily Market Notes report to investors, while commenting on tech stocks, Louis Navellier wrote: if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more Our survey this week showed that a majority of investors believe inflation will be a significant headwind for the markets by year-end. This is a notable difference from our survey in August where 24% of investors thought inflation was "transitory." Janet Yellen’s most recent comments on the matter did a little to allay fears. Inflation may be the only thing standing in the way of a year-end rally. Growth stocks, as well as dividend growth stocks, are historically your best defense against rising inflation. Interest rates are also falling despite all the taper concerns. Tech Stocks Save The Day The US 30 year fell below 2% today, dropping over 9 basis points.  The 10-year yield dropped 5 basis points.  The US Treasury had a very strong 5-year auction today as well.  What can explain this move in the face of apparent inflation trends and near term expectation of the beginning of tapering of open market purchases by the Fed?  The outstanding performance of tech stocks in general and FANG stocks in particular this earnings season. Tech innovation succeeds in a big way by cutting costs from existing methodologies, along with adding new sources of revenues and profits. The unprecedented rise of technology in the current decade has resulted in very subdued inflation numbers. The massive government support payments and even bigger quantitative easing by the Fed in response to the Covid pandemic has brought concerns of the inflation risk of pumping so much liquidity into the economy. The spike in energy prices from reopening demand, logistics snafus in particular computer chips shortages, a spike in home prices from work at home demand, and labor dislocations were all feeding inflation expectations. These, however, are mostly short term reactions to the pandemic adjustments and recovery. Investors have been reminded of the long term deflationary trends brought by technology changes by the remarkable continued strong growth of even the trillion dollar sized tech giants.  Without a gap up in interest rates in the cards, equity valuations become even more reasonable, particularly growth stocks. There may be a bump in the road when the tapering actually begins, but long term trends win in the end and those appear to be on track for further gains in equities. The Commerce Department on Wednesday reported that durable goods orders declined 0.4% in September, which was substantially better than economists’ expectations of a 1% decline.  This was the first monthly decline in durable goods orders since last April and was largely caused by supply chain glitches and port bottlenecks.  Durable goods orders for August were also revised lower to a 1.3% gain.  Durable goods orders have risen for 15 of the past 17 months.  So far this year, overall new orders for durable goods numbers are up 23.4%, but shipments are up only 13.6%, due to order backlogs from the supply chain glitches. Heard & Notable German city Frankfurt was found to have the highest risk of a housing bubble developing in a recent survey released by investment bank UBS.  Other cities at high risk were Toronto, Hong Kong, Munich, Zurich, and Vancouver. New York City ranked 18th while San Francisco ranked 14th. Source: Statista Updated on Oct 27, 2021, 3:31 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk6 hr. 42 min. ago Related News

How a new platform is helping leaders in sustainable tourism build strong partnerships

The Sigmund Project exclusively highlights businesses with a "triple bottom line": an emphasis on both profit and benefitting people and the planet. Insider Collaboration is the driving force behind The Sigmund Project. Courtesy of The Sigmund Project. The not-for-profit The Sigmund Project connects sustainability-focused innovators in tourism. Entrepreneurs and leaders can submit ideas or peruse projects to find an apt partnership. The site is already facilitating successful collaborations and aims to issue grants by mid-2022. This article is part of a series called "Partners for a Sustainable Future," profiling innovative alliances that are driving real progress in sustainability. The ethos behind "open source" is that the more brainpower involved in a product's evolution, the better. Things like peer production, review, critique, and collaboration are all encouraged.Recently, not-for-profit startup The Sigmund Project decided to apply this concept to tourism innovation. "The moniker we have regarding [open source] is 'nothing mentioned, nothing gained,'" founder Alan Elliott Merschen told Insider. "If you don't share the idea, it's never going to take root."Though it just launched in June 2021, The Sigmund Project has attracted thousands of unique visitors from more than 108 countries and facilitated about a dozen collaborations. For example, one Switzerland-based NGO recently connected with an ecoresort in the Solomon Islands via the platform, and the two companies are now in talks to become sustainability partners.Here's how Mershcen got The Sigmund Project off the ground, what some of the partnerships look like, and what he has planned for the future.An industry inflection point Ideas on The Sigmund Project's Website. Courtesy of The Sigmund Project Merschen has worked in the travel and tourism field for more than 30 years. He founded the travel marketing company Myriad, which specializes in international destination marketing for private and government clients across five continents. "My interest has always been the impact that tourism can have on a global economy as well as a local environment," Merschen said.When the COVID-19 crisis hit, it decimated the industry. Before the pandemic, the sector accounted for as much as 25% of all new job creation worldwide, according to the World Travel & Tourism Council. But in 2020, more than 62 million tourism-related jobs vanished virtually overnight.Merschen wanted to find a way to revitalize the industry while simultaneously addressing its sustainability problem - in 2016, the sector was responsible for about 5% of manmade carbon emissions worldwide, a number forecast to increase to 5.3% by 2030. So he began brainstorming and taking the pulse of his professional network.He found that COVID-19 was paving the way for previously unthinkable partnerships. "I saw an openness and willingness to collaborate that I had never seen before, not only among complementary products but also among competitors," Merschen said.Leaning into this observation, Merchen launched a digital platform to connect tourism industry innovators with one another. He envisioned an open-source ecosystem in which entrepreneurs with an app idea could connect with the perfect coder, for instance, or where a huge tourism company with a new product could identify niche distribution channels.Merchen saw this vision come to life recently when a multinational travel corporation found synergy with a startup called Gozee after posting about their needs on The Sigmund Project. The two organizations ended up sharing an Application Programming Interface (API) to help customers filter for sustainable travel experiences.How it worksNamed in honor of Merschen's father, The Sigmund Project went live on Father's Day 2021 and exclusively highlights businesses with a "triple bottom line": an emphasis not just on profit but also on benefitting people and the planet. Before submitting an idea, users watch a short video and take a quick quiz, which gauges if their proposed project fits into the platform's parameters. Aligning with one or more of the United Nations' Sustainable Development Goals is mandatory.Next, innovators can officially submit their idea to be vetted by a Sigmund Project staff member. If the proposal passes muster, the innovator is invited to a call with someone on the Sigmund team, where they talk through the idea, fine-tune its messaging, and suggest potential partners.The organization describes itself as both "high-tech and high-touch." Though the vetting process is largely manual and will remain so for the foreseeable future, the platform also has built-in automation features that will help it scale as traffic and submissions continue to increase.Travel with a side of social good Amina Mohamed, right, and Elizabeth discussing her photos at a Cameras for Girls workshop in Kampala, Uganda. Daniel Moxie Projects on the platform run the gamut when it comes to the UN's SDGs. One of the collaborators currently featured on The Sigmund Project is Amina Mohamed, an Ontario-based entrepreneur and founder of both Triple F Photo Tours and the nonprofit Cameras for Girls. Her companies align with the UN's fifth SDG around gender equality and empowering women."I designed my nonprofit to give back to my home country of Uganda and support marginalized females endeavoring to become journalists," she told Insider. To support the nonprofit work, Mohamed developed a separate for-profit company, Triple F, to lead "anti-tourist" photo tours that support local culture. About 10% of its revenue flows to Cameras for Girls, which is a registered charity in Canada as of fall 2021. Amina Mohamed riding on a boda boda with the driver on the back in Bombo, Uganda, on a Triple F Photo Tour. Courtesy of Triple F Photo Tours When COVID-19 hit, it nearly tanked her tour operation. "I had a choice to make - to let this business die, or go all in and make it work" she said. She ultimately went for option B, venturing down multiple avenues to stay afloat, including posting about Triple F and Cameras for Girls on The Sigmund Project. In Mohamed's post, she writes about looking for resources to expand her women-focused photography tours to Costa Rica.The Sigmund team connected Mohamed with a reputable, Toronto-based travel agency in the company's network. In turn, the agency connected Mohamed with resources in Costa Rica. Thanks to the introduction, Mohamed now has plans to expand Triple F's tours to the country starting in February 2022, with future trips to follow.Looking to the futureThanks to contributions from an anonymous donor, The Sigmund Project is fully funded for the next five years. "Everything that people are doing is completely free, and it will continue to be like that," Merschen said. "We like to say our only currency is collaboration."In that vein, The Sigmund Project is on the prowl for its own partnerships. The organization has forged an agreement with NYU's Tisch Center of Hospitality. Other notable institutions from Canada to Germany have expressed interest in becoming involved. One professor has already included the site in a class assignment, requiring students to collaborate on the platform with entrepreneurs from around the world.Another upcoming goal for The Sigmund Project is to provide financial support to innovators. In 2022, Merschen plans to roll out an investment grant feature to establish a healthy middle ground between micro-financing and the big-bucks world of venture capitalism."There's nobody in the middle," he said. "That's where we want to be."Another differentiating factor for the grants, Merschen explained, is that no company will be able to secure one single-handedly - innovators will need to submit proposals with at least one other entity, in line with the platform's ethos of collaboration.The Sigmund Project plans to take a small interest in companies that receive grants. "The idea is that that company will be successful/profitable, and it will share some of that back with The Sigmund Foundation," Merschen said. He clarified that all returns are immediately reinvested in Sigmund's operating expenses and future grant recipients.Merchen hopes that this tactic will enable The Sigmund Project to develop its own circular operating model. "That's how we become sustainable," he said.Read the original article on Business Insider.....»»

Category: topSource: businessinsider6 hr. 42 min. ago Related News

How Long Until Supply Chains Finally Normalize: Three Things To Watch

How Long Until Supply Chains Finally Normalize: Three Things To Watch Earlier today, Morgan Stanley showed that more than inflation, more than concerns about the historic labor crisis, definitely more than covid, one thing has preoccupied the minds of most management teams this quarter: "supply chain issues", a topic which has seen an explosion of mentions on Q3 earnings calls. But while by now everyone is aware that the global supply-chain shock is truly historic and getting worse by the day, with used car prices rising sharply again and over 30 million tons of cargo waiting outside US ports ahead of the holiday season, few have considered what realistically could normalize these frayed supply chains. To address this topic, in a research report published overnight, Goldman's economists assessed the three key drivers of supply chain normalization and their most likely timing: improved chip supply driven by post-Delta factory restarts (4Q21) and eventually by expanded production capacity (2H22 and 2023); improved US labor supply (4Q21 and 1H22); and the wind-down of US port congestion (2H22). And speaking of used car prices, in the first 15 days of October, the Manheim used vehicle index surged 8.3% due to yet another global supply shock: this time due to Delta-variant factory shutdowns in Southeast Asia and elsewhere. Here, in a rare mea culpa, the Goldman economists admit that while previously they had expected improved microchip availability by 1H22 on the back of normalizing Japanese automotive shipments (post-factory fire) and a US supply response, with these catalysts now behind us — the Naka factory in Japan resumed normal shipments activity in July and US semiconductor plant hours jumped to 73 hours per week in the first half of the year vs. 46 in 2019 — Goldman now expects a "more extended timeline." So with that demonstration of how thoroughly unpredictable the non-linear cascading consequences of such s diffuse, global phenomenon as international production pathways and supply chains are, Goldman proceeds to assess the three key drivers of supply chain normalization listed above, their likely timing, and the key indicators to track progress. We start by reviewing one unique aspect of the global semiconductor industry that sets it apart from most other manufacturing and services industries of today’s economy: outside of Southeast Asian plant shutdowns, both output and capacity utilization have already returned to quite elevated levels. So while the supply of dress shirts and haircuts is likely to rise sharply if demand returns, higher utilization of existing semiconductor capacity is not a viable path toward resolving the chip shortage. Additionally, much needed moderation in US and global goods demand has alleviated (and will continue to alleviate) goods-sector imbalances. As shown in the left panel of the next chart, real retail spending has already normalized in major foreign economies. And while it picked back up domestically in August and September, US goods consumption has nonetheless declined by 5% since March. That said, from the perspective of the key bottlenecks contributing to inflation, demand for consumer electronics, business tech, and other semiconductor-intensive products has remained elevated—both globally and in the US (right chart above). Furthermore, one should hardly expect the increased digitization of society and consumer preferences to reverse post-pandemic: Goldman's equity analysts forecast demand for semiconductor-intensive consumer goods to remain strong in 2022 (smartphones +4% after +12% in 2021, autos +5% after +6%, PCs -12% after +28% cumulatively in 2020 and 2021). So returning to supply constraints, here is a summary of the three key resolution channels in turn (global chip production, US labor supply, reduced port congestion). Channel 1, Step 1: Improved Chip Supply from East Asia Reboot Goldman's expected timeline: 4Q21 Key indicators to watch: Effective Lockdown Indices (ELI) particularly in Malaysia, Vietnam, Mainland China, and Taiwan East Asian industrial production and exports of semiconductors, electrical components, and consumer electronics Automaker commentary on near-term chip availability China industrial policy, with respect to power cuts and the Delta variant Early- and mid-month trade reports (Japan, Taiwan, and Korea) As shown in the next chart, three supply shocks weighed heavily on auto production this year, starting in February with severe winter storms and power outages in the southern United States and followed by a March fire at the Renesas automotive chip factory in Naka, Japan. While the plant was fully rebuilt in Q2 and auto production was set to return to near-normal levels in Q3, the arrival of the Delta variant and “zero covid” policies in some East Asian economies combined to produce another sharp drop in US semiconductor supply. The red line in the same exhibit shows the mid-year stepdown in automotive semiconductor units imported from key East Asian suppliers (data derived from granular Census trade records that include unit counts). Looking ahead, there are several key drivers for optimism, starting with the vaccination-led drop in infection rates (chart below, left and center). As a result, lockdown severity is also now approaching pre-Delta levels in both Malaysia and Vietnam (right panel). Going forward, it's important to track the semiconductor output and trade statistics of these key suppliers, as well as closely watch Chinese output and export data to monitor possible disruptions to chip or consumer goods supplies, for example related to power cuts or covid restrictions. For example, imports of integrated circuits from Vietnam and semiconductor devices and diodes from Malaysia declined 34% year-on-year in August, but Chinese production has so far remained firm. These developments coupled with better near-term production commentary from General Motors and Toyota, would argue for some microchip relief in Q4, and Goldman estimates the removal of this supply bottleneck could return US auto production to or near the 10-11mn SAAR range achieved in late 2020 (vs. 7.8mn in September and 8.6mn in Q3). Increases beyond that pace would likely require additional supply improvements, in part because today’s smart cars utilize more and more automotive systems with microchips and in part because of the continued mix shift towards SUVs and electric vehicles (EVs), both of which are relatively chip-intensive. The next chart plots the ratio of global automotive semiconductor shipments to global vehicle production (both on a unit basis.) The secular increase in chip intensity continued in 2021 and suggests demand for automotive semiconductors will continue to rise even with flattish unit vehicle demand. Channel 1, Step 2: Improved Chip Supply from New Capacity Goldman's expected timeline: 2H22, with a more normal environment in 2023 Key indicators to watch: Global semiconductor shipments, particularly automotive: Microcontroller Units (MCUs), power semiconductor, analog devices GS equity research forecasts for semiconductor capacity growth 2022 auto production forecasts (GS equity research, IHS) US industrial production of computers, communication equipment, and semiconductors Foreign production and US imports of auto and consumer electronics A key step towards easing supply constraints and lowering core goods prices is the build out of global microchip production capacity. But despite the dramatic impact of the chip shortages on US economic output and consumer prices, automotive semiconductor capex only rose back above the 2019 pace in Q3 And with 2-3 quarter lags between equipment capex and chip production—and several-year lead times for new foundries—the rise in capex to above-normal levels in Q4 may not meaningfully boost chip supply until the second half of next year. Reasons for the slow and restrained capex response include the long lead times and high fixed costs of new foundries and the likelihood that downstream industries will shift production away from the semis currently in short supply—many of which are older generation products to begin with. High industry concentration is another factor contributing to restrained capital deployment in the face of very strong near-term demand. With Goldman analysts tracking capacity growth of just 5-10% per year in 2021-22 among the semiconductor industries that supply the auto and consumer electronics sectors, and with consumer demand for these products also likely growing at that horizon and given the rising semiconductor content of motor vehicles, Goldman expects chip supply to remain constrained through at least mid-2022. This reduces the scope for automakers to sustain above-normal production, and restock heavily depleted vehicle inventories. Accordingly, Goldman also expects auto dealer inventories to remain very low through mid-2022. Channel 2: Improved US Labor Supply Goldman's expected timeline: Q421 and 1H22 Key indicators to watch: Payrolls, particularly manufacturing and transportation JOLTS, particularly manufacturing and transportation Industrial production of consumer goods, excluding autos and high tech Supplier deliveries components of ISMs and regional Fed surveys Labor force participation rate Labor shortages are another important bottleneck, but labor supply constraints are expected to ease substantially in coming months for several reasons. First, the September expiration of unemployment insurance benefits will boost Q4 job growth by around 1.0 million according to Goldman economists. Second, workers who have left their jobs because of child care concerns to return to work now that schools have reopened. Third, virus concerns will continue to fade as vaccinations increase further and infection rates fall—this would encourage some of the 2-3 million individuals staying away from the workplace because of health concerns to return to the job market. Taken together, Goldman expects total employment to increase by about 4mn workers by end-2022, a 2.7% boost to non-farm payroll employment. As shown in Exhibit 11, labor demand in these industries is 5.1% and 0.9% above pre-pandemic levels in transportation and manufacturing, respectively. With job openings and wages at new highs for factory and transportation jobs, these labor shortages should ease gradually as the sectors draw workers from lower-paid services industries Channel 3: Unwind of Port Congestion Expected timeline: 1H22 Key indicators to watch: Transportation payrolls, particularly in the marine cargo handling, support activities for transportation, couriers and messengers, and warehousing and storage sectors Ships at anchor and inbound container traffic at US ports Shipments component of the Cass Freight Index US ex-auto manufacturing production US imports of cars and consumer goods Real retail inventories, excluding autos Shipping delays and port congestion are also important bottlenecks for seaborne consumer products like furniture and sporting goods—semiconductors and high-value electronics generally arrive via airfreight. Stranded cargo at the Port of Los Angeles has surged to record highs (left panel of Exhibit 12) due to elevated trade volume—container inflows into US ports are 25% above pre-pandemic levels (see right panel)—and ongoing shortages of transportation-sector labor. We don’t expect significant near-term capacity growth in the goods shipping sector because bottlenecks currently constrain multiple modes of transportation. For example, if ports increased their capacity but the truck-driver shortage is not resolved, total shipping times could remain little changed. Moreover, to the extent transportation companies view shipping demand as temporarily elevated, they are unlikely to boost capacity meaningfully in the near-term. We instead see two other drivers behind an expected easing in shipping and transportation constraints in the first half of 2022. First, demand is seasonally weaker in the fall and winter, bottoming out in February after the Chinese New Year when it is typically about 15-20% below August levels. If port throughput maintains the August not-seasonally-adjusted pace, the seasonal moderation in demand would help clear the backlog. Second, and as discussed in more detail here and in Exhibit 3, we expect US import volumes to normalize somewhat due to waning fiscal stimulus and a consumer rotation back toward services consumption. Inflation and Fed Implications As an aside, since any delays in supply chain normalization means higher prices, Goldman has once again boosted its sequential inflation assumptions for Q4 and early 2022 to reflect these continued upward price pressures, having done so already every month since April. The bank now forecasts year-on-year core PCE inflation of 4.3% at year-end, 3.0% in June 2022, and 2.15% in December 2022 (vs. 4.25%, 2.7% and 2.0% previously). This slower resolution of supply constraints means that year-on-year inflation will be higher in the immediate aftermath of tapering than we had previously expected. While we expect inflation to be on a sharp downward trajectory at that point and to continue falling through the end of the year, this higher-for-longer path increases the risk of an earlier hike in 2022. Tyler Durden Wed, 10/27/2021 - 15:27.....»»

Category: blogSource: zerohedge7 hr. 10 min. ago Related News

Make the Most of This Historic Market

Sheraz Mian goes over the bullish and bearish arguments for how investors should respond to an economy that's rapidly recovering from the pandemic and hitting new highs. The stock market’s recent behavior has been nothing less than spectacular and one for the record books.The market rebound that got underway in March last year still continues, with the major indexes at or near record levels. Helping the stock market’s momentum is optimism about the economy, with the U.S. economy expected to achieve a growth pace of close to +6% this year, despite the growth pace moderating in Q3.But there are those with less optimism about the outlook given the ongoing resurgence in infection levels and slow-moving vaccination efforts in many parts of the world that are allowing new strains of the virus to take hold. There are worries about inflation as well, with a vocal segment of the market disagreeing with the Fed’s ‘inflation-pressures-are-transitory’ outlook.The interplay of these competing views will determine how the market performs in the coming months and quarters. To that end, let’s examine the landscape of bullish and bearish arguments to help you make up your own mind.Let's talk about the Bull case first.A Strong Economic Rebound: The Q3 GDP growth deceleration from the first half’s pace is only temporary and reflective of transitory factors like supply-chain bottlenecks and the Delta variant. The overall growth backdrop remains very strong, with the U.S. economy expected to expand by close to +6% this year and more than +4% next year.Driving this favorable growth outlook is the U.S. household sector that remains in excellent financial health. The unprecedented fiscal support was instrumental in helping keep household finances in good shape through the pandemic, with labor market gains expected to sustain the momentum going forward. In addition to the elevated consumer spending outlook, adding depth to the economic rebound is a strong housing sector and continued factory sector momentum.These positive growth projections do not include contribution from the new infrastructure plan and other spending measures currently being considered in Congress.  All in all, the growth outlook hasn’t looked this good in a long while.Continued . . .------------------------------------------------------------------------------------------------------Notification of Release: 5 Stocks Set to Double Five Zacks' experts each revealed their single favorite stock with the best chance to gain +100% and more in the months ahead. One tech stock has skyrocketed +1,200% since late 2017 and experts predict more stratospheric gains.¹Today, you are invited to download the just-released Special Report that names these stocks and spotlights why their gain potential is so exceptional.See Stocks Now >>------------------------------------------------------------------------------------------------------Expansive Fiscal Measures: The Biden administration’s ambitious spending plan has not been passed yet, but it is in-line with the extraordinary fiscal measures that have been in place since the start of the pandemic.Beyond the visible fiscal relief measures, the government’s proactive vaccine investments, under the current and previous administrations, allowed the economy to reopen and successfully handle the Delta variant that remains a problem in many parts of the world. The current U.S. debate about booster shots and children’s vaccines spotlight the vaccine supply abundance in the country that even many rich countries don’t enjoy.These policy measures helped replace lost wages for workers, assisted small businesses in staying open and staved off solvency issues in industries hit hard by the pandemic. Importantly, these and the coming measures will ensure an extended period of above-trend growth for the U.S. economy for the next few years.Supportive Fed: While there is some uncertainty in the market about the timing of the central bank’s tactical decisions as it initiates ‘tapering’ the current QE program, the market has a roadmap in the way the Fed concluded its last bond-purchase program in 2014.Importantly, the Fed’s ‘transitory’ inflation explanation assures that it will be deliberate and patient as it handles this key part of its mandate.The Fed’s hard-won credibility on the inflation question is one of the biggest tools in its arsenal as it leads the market in the current environment of evolving inflation expectations. What this means is that the central bank will continue to keep interest rates and overall financial conditions supportive of stocks for the foreseeable future.Let's see what the Bears have to say in response.Market Complacency about Economic Growth: The U.S. economy has been unable to sustain the first half’s strong growth momentum, as this week’s Q3 GDP report will show. The market appears too sanguine about the growth deceleration, seeing the trend as resulting from temporary factors like Delta that will reverse from Q4 onwards.While Covid infection rates have thankfully come down, some of the other headwinds like supply-chain challenges that weighed on the economy in Q3 are still with us. As such, the growth deceleration in Q3 could very well continue in Q4 and beyond. This will be in contrast to current consensus estimates that suggest growth rebounding in the current period (2021 Q4) after losing steam in Q3.Tied to the growth question is the issue of inflation, which the market appears comfortable seeing from the Fed’s standpoint as ‘transitory’ in nature. The consensus view on growth and inflation could very well be on target, but it would nevertheless pay to be prepared for the dreaded scenario of low growth and high inflation as well.A Durable Hit to Confidence? The risk to human life, a function of the highly contagious pathogen, has been a unique aspect of this economic downturn. As a result, previously benign activities like eating out or taking a flight or any activity that involved physical interaction with others got weaponized.Public health officials keep emphasizing that the Covid vaccines provide sufficient immunity against Delta and other variants. This should help sustain the momentum towards increased reopening and social interactions that became the norm in the U.S. since the Summer.That said, the pathogen has a wide pool of unvaccinated population globally where it can thrive and morph into even deadlier variants. With the new vaccine technology, one would expect a quicker turnaround from the industry to counter any new strain that offers significant challenges to the existing vaccines. But the emergence of any such new strains will nevertheless be a hit to confidence that will have consequences for the markets. The Market’s Fed Addiction: The market’s Fed dependence has only increased as a result of this pandemic. The central bank not only cut interest rates to near-zero, but has been playing an active role in ensuring market liquidity and backstopping corporate balance sheets.In an ideal world, the central bank will gradually remove the market’s ‘training wheels’ without creating uncertainty and volatility. But we know that we don’t live in an ideal world, which guarantees the coming period of monetary policy transition to generate uncertainty.The markets responded calmly to the Fed announcement in July that opened the door for a ‘taper’ decision in one of the coming meetings this year. It is possible that the Fed seamlessly executes this policy change without any disturbance, but the more likely outcome is at least some level of uncertainty that disturbs the markets.Where Do I Stand? I don’t dismiss the bearish arguments entirely, but I don’t see them adding up to coming in the way of the U.S. economy’s rebound or reversing the spectacular rally in the market.With most of the U.S. at-risk population already vaccinated, the risks posed by the Delta variant should be manageable and offer no durable hindrance to economic reopening.The issue is with regions beyond the U.S. that have far smaller proportions of their populations immunized and are forced to institute fresh restrictions in the face of this outbreak. That said, the worst of the pandemic’s economic and corporate earnings impact is now behind us, with the picture getting clearer as we move forward.As regular readers of my earnings commentary know, the earnings picture has not been this good in a long time, with estimates for the current and coming quarters steadily going up. This is a trend that I strongly feel will only accelerate in the coming months as we put the pandemic behind us.Markets are forward-looking pricing mechanisms; they have already discounted the economic rebound and are looking forward to the aforementioned turnaround in earnings outlook. Continued confirmation of this favorable trend will further strengthen bullish sentiment in the market.These are historic times for the economy and the market. And historic times create historic opportunities.All in all, this is the best time to be fully invested in the market, particularly if you are investing for the long haul.And I would definitely be a buyer on any dip because with economic growth this year and next to be the strongest in years, it looks like there's a lot more upside to go. How to Make This Historic Growth Work for You  Today is the perfect time to take advantage of the current strength of our economic recovery. That's why I'm inviting you to look into our unique arrangement called Zacks Investor Collection.It gives you access to the picks and commentary from all our long-term portfolios in real time for the next 30 days. Plus, it includes Zacks Premium research so you can find winning stocks, ETFs and mutual funds on your own.In 2020, these portfolios closed 67 double- and triple-digit gains and there have already been 48 more in 2021. The gains reached as high as +251.1%, +386.8% and even +995.2%.¹Here's a Head Start To put the odds of success even more in your favor, you are also invited to download our just-released Special Report, 5 Stocks Set to Double. Each stock was handpicked by a Zacks expert as their personal favorite to have the best chance of gaining +100% and more in the months ahead:Previous editions of this report have racked up some huge gains. Examples include Boston Beer Co. +143.0%, NVIDIA +175.9%, Weight Watchers +498.3% and Tesla +673.0%.¹Stock #1: Earnings Jumping by 10,050%??? That’s what analysts are predicting through year’s end for this well-run oil mid-cap! It has one of the best balance sheets in the industry and is positioned to take advantage of high demand and rising prices.Stock #2: Profiting from Modern Medicine’s Great Discovery Gene editing aims to cure a multitude of diseases, and Zacks names one company to gain the most in months to come. Its upcoming data release and superior patent profile offers a huge opportunity for investors.Stock #3: Stunning Gap Between Earnings and Stock Price This divergence always presents an opportunity, and a small pop culture consumer company plans to “completely disrupt its space.” Already, over the past year, its earnings beats are averaging 160% per quarter.  Stock #4: Unheard of Record for New Product Launch   Audiophiles love this consumer electronics company that blasted past forecasts for 15 years straight. Now it’s coming off a patent win over a tech giant and a record week for new product registrations.Stock #5: Riding Not 1 but 2 Booming Industries An ascending star in streaming TV and digital advertising, this tech stock has skyrocketed +1,200% since late 2017. Experts believe that some recent profit taking has set the stage for more stratospheric gains.  The earlier you get into these stocks the higher their profit potential. Also, the opportunity to download this just-released Special Report, 5 Stocks Set to Double, ends on Saturday, October 30th.Look into Zacks Investor Collection and 5 Stocks Set to Double now >>Thanks and good trading,SherazSheraz Mian serves as the Director of Research and manages the entire research department. He also manages the Zacks Focus List and Zacks Top 10 Stocks portfolios. He invites you to access Zacks Investor Collection.¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position.  Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks7 hr. 41 min. ago Related News

Dan Loeb Urges Breakup Of Energy Giant Shell "To Cut Carbon Output & Increase Shareholder Returns"

Dan Loeb Urges Breakup Of Energy Giant Shell 'To Cut Carbon Output & Increase Shareholder Returns' After saving investors by pulling off double-digit returns in Q3, while the overall market experienced weakness and volatility, Dan Loeb’s hedge fund Third Point is now in the business of saving the planet too it seems. Having taken a large stake in Royal Dutch Shell PLC, Loeb is urging the oil giant to separate into multiple companies to retain and attract investors as many flee stocks seen as environmentally unfriendly. Shell is one of the cheapest large cap stocks in the world, trading at under 4x next year’s EBITDA and ~8x earnings at “strip” prices. It also trades at a ~35% discount on most metrics to peers ExxonMobil and Chevron despite Shell’s higher quality and more sustainable business mix. Compared to its peers, Shell generates a much larger percentage of its cash flow and earnings from stable businesses that have a major role to play in the energy transition. According to the latest letter to investors, Third Point believes Shell should consider creating at least two stand-alone companies: one with legacy businesses such as refining that would provide steady cash flow and another that houses renewables and other units requiring substantial investment. "For example, a standalone legacy energy business (upstream, refining and chemicals) could slow capex beyond what it has already promised, sell assets, and prioritize return of cash to shareholders (which can be reallocated by the market into low-carbon areas of the economy),” the letter reads. And a standalone LNG/Renewables/Marketing business could combine “modest cash returns with aggressive investment in renewables and other carbon reduction technologies,” with the business benefiting from a “much lower cost of capital.” Crucially, Loeb wants people to know this is not just about the money, claiming in the letter that if Shell pursues this type of strategy it would probably lead to an “acceleration of carbon dioxide reduction as well as significantly increased returns for shareholders," adding that he sees opportunity for “improvement across the board.” The billionaire hedge fund manager praises Shell’s reduction in refineries, from owning 54 in 2004 to only 5 by year-end 2021, as a “remarkable accomplishment," and says Shell is positioned to return capital “earlier and more aggressively than peers,” due to its “massive” dividend cut and asset sales. Many ESG investors employ a strategy of buying companies that already have a clean bill of health. A lesson from our prior engagements is that it is often most impactful to invest in companies where the opportunity for positive change is the greatest. While daunting, there is perhaps no bigger ESG opportunity than in “Big Oil”, and specifically, at Royal Dutch Shell. We are early in our engagement with the company but are confident that Shell’s board and management can formulate a plan to accelerate decarbonization while simultaneously improving returns for its long-suffering shareholders. Royal Dutch Shell ADRs, traded on the NYSE, spiked on the report... Finally, amid all the current soaring/record energy costs around the globe, Bloomberg's Javier Blas sums up the farcical virtue-signaling (and hypocrisy) being seen by activist investors when it comes to fossil fuels... We better get oil demand peaking, and soon, and then falling even faster, because oil capex is effectively over. Activist investors are taking over Big Oil, and they want their cash, and quickly (and save the planet, that too...) #OOTT — Javier Blas (@JavierBlas) October 27, 2021 As Blackstone Inc. co-founder Stephen Schwarzman warned this week at a conference in Saudi Arabia: “We’re going to end up with a real shortage of energy,” he said. “And when you have a shortage it’s just going to cost more and it’s probably going to cost a lot more. And when that happens you’re going to get very unhappy people around the world, in the emerging markets in particular.” *  *  * Full Third Point letter below: Third Point Q3 2021 Investo... by Zerohedge Tyler Durden Wed, 10/27/2021 - 14:07.....»»

Category: blogSource: zerohedge7 hr. 41 min. ago Related News

What"s Really Driving The Crazy Rally In Commodity Prices?

What's Really Driving The Crazy Rally In Commodity Prices? Submitted by Stuart Burns of Oilprice.com Bulls are pointing to the surging metals prices as evidence a supercycle is alive and well. However, no one but a snake oil salesman would suggest that what we are seeing is anything healthy. The 10-year commodities boom seen earlier this century, for example, was driven by rapid industrialization in China, a long-term expansion that lifted hundreds of millions out of poverty. Energy costs drive supply constraints But the current surge in prices is a result of energy markets driving supply-side constraints. Apart from the chaos that is the current global energy market, it’s China’s energy crisis that is principally driving metals prices higher. However, China is far from alone in facing an energy crisis. Multiple other clouds are gathering. Some are short-term, such as coal and natural gas supplies. Others are longer-term, such as explored in a Financial Times post this week. Property market challenges in China The precarious state of China’s property market and the longer-term push by Beijing to pivot the economy away from construction toward consumption. The impact of China’s property market on the last supercycle and the current metals market cannot be overestimated. Even today, China’s property sector accounts for an estimated 30% of the country’s near $15 trillion economy, the Financial Times reports, Construction alone accounts for about half of China’s steel consumption. Some metals, like copper, cobalt, nickel, and lithium, hold promise in the longer term due to rising demand from electrification. There is evidence to suggest this will simply supplant demand from a dwindling construction sector. William Jackson, chief emerging markets economist at Capital Economics, is quoted as saying “China’s property sector is right at the end of a boom period,” which would have profound consequences for suppliers of products like iron ore, coking coal, and metals used in construction, like copper and aluminum. The impact is not going to be uniform across the commodities sector, some metals will find alternative applications, like electrification. Commodities like agricultural products will continue to see increasing demand from a rising global population and rising living standards. But global GDP growth will feel the effect of a smaller Chinese property sector in the years to come. According to the IMF, China delivered 28% of all global output growth between 2013 and 2018, the Financial Times states. If China’s property sector accounted for one-third of that, the sector was responsible for more than 9% of worldwide growth worldwide over that period. The road ahead The current logistics and supply-side constraints, while immensely painful, will prove relatively short-lived. We are already seeing steel prices softening. While non-ferrous metals have put in a burst of bullish gains this month, these will likely ease next year, too. Of more profound and far-reaching impact will be a sharp retraction in China’s construction sector. That would have ramifications and undermine many sectors, such as iron ore, for the rest of the decade. It would also impact economies like Brazil, South Africa, and Australia, which are so reliant on the Chinese construction market. Tyler Durden Wed, 10/27/2021 - 14:27.....»»

Category: blogSource: zerohedge7 hr. 41 min. ago Related News

Third Point 3Q21 Letter: Upstart And SentinelOne

Dan Loeb’s letter to Third Point investors for the third quarter ended July 2021, discussing the top winners in Q3; Upstart Holdings Inc (NASDAQ:UPST) and SentinelOne Inc (NYSE:S). Q3 2021 hedge fund letters, conferences and more Dear Investor: During the Third Quarter, Third Point returned +12.5% in the flagship Offshore Fund and +16.2% in the […] Dan Loeb’s letter to Third Point investors for the third quarter ended July 2021, discussing the top winners in Q3; Upstart Holdings Inc (NASDAQ:UPST) and SentinelOne Inc (NYSE:S). .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more Dear Investor: During the Third Quarter, Third Point returned +12.5% in the flagship Offshore Fund and +16.2% in the Ultra Fund, bringing year to date returns to +29.5% and +36.5%, respectively. Assets under management at September 30, 2021 were approximately $19.3 billion, including $863 million in the Third Point Structured Credit Opportunities Fund.1 The top five winners for the quarter were Upstart Holdings Inc (NASDAQ:UPST), SentinelOne Inc (NYSE:S), Prudential Financial Inc (NYSE:PRU), Danaher Corporation (NYSE:DHR), and Avantor Inc (NYSE:AVTR). The top five losers for the quarter were Paysafe Ltd (NYSE:PSFE), SoFi Technologies Inc (NASDAQ:SOFI), DiDi Global Inc (NYSE:DIDI), Uber Technologies Inc (NYSE:UBER), and Burlington Stores Inc (NYSE:BURL). Our top winners on a percentage basis in Q3 were our two largest positions; Upstart, up 153%, and SentinelOne, up 26%, as public market investors rewarded both companies’ disruptive business models and high-growth trajectories. Upstart has started to upend the FICO-dependent, $84 billion unsecured personal loan market with its AI-driven underwriting approach and is ramping up its footprint in the $685 billion auto lending market. In its most recent earnings report, the company raised its full-year revenue estimates by 25%. We expect SentinelOne to grow rapidly and continue to gain market share over the next decade as flexible work patterns, cloud adoption, and IoT create more security vulnerabilities. This market is still dominated by legacy vendors whose solutions pale when compared to SentinelOne’s autonomous, machine-learning based security, which is taking share and helping the company grow annual recurring revenue by more than 100% year-over-year. 2021 has been a good year for our portfolio and markets. Risk assets have climbed a wall of worry as easy financial conditions and post-vaccine enthusiasm created a favorable market backdrop. Looking ahead to 2022, we remain constructive but increasingly cautious, as the tapering of fiscal and monetary stimulus should reduce support for asset prices. On the positive side, consumer balance sheets remain robust and inventories low, allowing for sell-in, and transitory supply shocks should resolve over the next few quarters. We expect uneven results in the near-term as companies contend with supply, labor, and logistical headwinds. The retail holiday season looks challenging, and notions of what constitutes pricing power at the micro level will show through results as we monitor the path of PPI versus CPI. We are looking for market shifts based on recent actions in China and watching how the path of interest rates and the dollar may impact financial conditions. We have increased the number of single name shorts in our portfolio and expect to take advantage of dislocations in quality and compounder equities. Q3 2021 hedge fund letters, conferences and more Return of “Event-Driven” Investing In our Second Quarter letter, we wrote that event-driven situations looked interesting again, and our portfolio now reflects this view. Four positions are worth highlighting: Vivendi Third Point made an investment in Q1 in shares of Vivendi SE (OTCMKTS:VIVHY), the European media conglomerate. We were attracted by the industry-leading position of its crown jewel asset, Universal Music Group, and the announced separation of that asset as a standalone entity. Our upside calculation was underpinned by a sum-of-the parts analysis and an understanding of the company’s disparate assets. Third Point’s involvement was rumored in the press but in deference to our engagement with the company during a delicate time this Spring, we chose to keep our conversations about tax structure and corporate governance surrounding the spin private. We were pleased that Vivendi’s controlling shareholder, Vincent Bolloré, chose to take meaningful steps forward on governance for the new UMG entity, including commitments for an independent board and the equal treatment of shareholders. We believe these steps eased investor concerns about UMG’s corporate governance that may otherwise have created an overhang in the stock, contributing to UMG’s successful listing in late September. Dell Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies Inc (NYSE:DELL) announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them. Entain MGM’s failed approach to acquire Entain PLC (LON:ENT) in January gave us the opportunity to study this iGaming leader ahead of the July expiry of the U.K.’s six month “cooling off” window. We gained an appreciation for the valuable BetMGM JV stake as well as Entain’s vertically integrated tech stack. The shares appeared to offer attractive value without pricing in the prospect for a bid; in short, we thought there was cheap optionality. Entain’s shares rose after DraftKings approached the company in September and remain above pre-offer levels, despite the recent withdrawal of interest, validating the company’s standalone value. It is uncommon to see one company receive two unique bids in the same calendar year, and we think this bodes favorably for Entain’s business and strategic value. Q3 2021 hedge fund letters, conferences and more Prudential PLC During the quarter, Prudential successfully completed its previously announced spin-off of Jackson National and raised additional equity in Asia for the remaining Pru-Asia business. We are pleased to see the value gap begin to close but see considerable additional appreciation potential as Asian-domiciled and other global investors begin to fully appreciate its significant discount to its peers, excellent franchise, and growth potential. New Position: Royal Dutch Shell Third Point initiated a position in Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) (“Shell”) during the second and third quarters. The past two years have been especially challenging for Shell shareholders due to a major dividend cut and well-publicized court case that ordered changes to Shell’s business model. Stepping back further, it has been a difficult two decades for shareholders, with annualized stock returns of just 3% and decreasing returns on invested capital. However, despite the current sour sentiment, we see opportunity for improvement across the board at Shell. Shell is one of the cheapest large cap stocks in the world, trading at under 4x next year’s EBITDA and ~8x earnings at “strip” prices. It also trades at a ~35% discount on most metrics to peers ExxonMobil and Chevron despite Shell’s higher quality and more sustainable business mix. Compared to its peers, Shell generates a much larger percentage of its cash flow and earnings from stable businesses that have a major role to play in the energy transition. For example, Shell is the largest global player in liquified natural gas (“LNG”), which is a critical transition fuel to move off carbon intensive coal-fired power generation. In 2022, we expect the company’s energy transition businesses (LNG, Renewables and Marketing) to generate EBITDA of over $25 billion with sustaining capex of only $5 billion. These businesses account for just over 40% of Shell’s EBITDA but would likely support Shell’s entire enterprise value if they were a standalone company. At the current share price, we believe investors are getting the remaining ~60% of EBITDA (upstream, refining and chemicals) for free. Q3 2021 hedge fund letters, conferences and more Management has been gradually divesting assets that are not aligned with a low-carbon future such as upstream and refining. This is perhaps most evident in Shell’s refining business where the company went from owning 54 refineries in 2004 to only five (by year-end.) This is a remarkable accomplishment. Shell’s massive dividend cut and other asset sales (e.g. Permian) have left it with an under-levered balance sheet with year-end 2021 net debt to EBITDA of well below 1x. This positions Shell to return capital earlier and more aggressively than peers. Given all these positive attributes, why can’t Shell attract investor interest? In our view, Shell has too many competing stakeholders pushing it in too many different directions, resulting in an incoherent, conflicting set of strategies attempting to appease multiple interests but satisfying none. Some shareholders want Shell to invest aggressively in renewable energy. Other shareholders want it to prioritize return of capital and enjoy the exposure to legacy oil and gas. Some investors think Shell should shrink to grow, while we suspect some within Shell seem sentimentally attached to its “super major” legacy. Some governments want Shell to decarbonize as rapidly as possible. Other governments want it to continue to invest in oil and gas to keep energy prices affordable for consumers. Europe paradoxically wants both! Shell’s board and management have responded to this with incrementalism and attempts to “do it all.” As the saying goes, you can’t be all things to all people. In trying to do so, Shell has ended up with unhappy shareholders who have been starved of returns and an unhappy society that wants to see Shell do more to decarbonize. Shell’s board can and must move faster. We believe all stakeholders would benefit from a plan to: Optimize Shell’s corporate structure to reduce cost of capital and allow it to more aggressively invest in decarbonization; Match its business units with unique shareholder constituencies who may be interested in different things (return of capital vs. growth; legacy energy vs. energy transition); Allow each of its business units to more nimbly and effectively react to market and environmental policy developments. Q3 2021 hedge fund letters, conferences and more This should involve the creation of multiple standalone companies. For example, a standalone legacy energy business (upstream, refining and chemicals) could slow capex beyond what it has already promised, sell assets, and prioritize return of cash to shareholders (which can be reallocated by the market into low-carbon areas of the economy). A standalone LNG/Renewables/Marketing business could combine modest cash returns with aggressive investment in renewables and other carbon reduction technologies (and this business would benefit from a much lower cost of capital). Pursuing a bold strategy like this would likely lead to an acceleration of CO2 reduction as well as significantly increased returns for shareholders, a win for all stakeholders. Many ESG investors employ a strategy of buying companies that already have a clean bill of health. A lesson from our prior engagements is that it is often most impactful to invest in companies where the opportunity for positive change is the greatest. While daunting, there is perhaps no bigger ESG opportunity than in “Big Oil”, and specifically, at Royal Dutch Shell. We are early in our engagement with the company but are confident that Shell’s board and management can formulate a plan to accelerate decarbonization while simultaneously improving returns for its long-suffering shareholders. UnitedHealth UnitedHealth Group Inc (NYSE:UNH) is one of the largest healthcare companies in the world and a market leader in both its insurance and healthcare services (Optum) businesses. We initiated our position during the 2020 Presidential election at a time of heightened political and regulatory uncertainty. We believe under its new CEO, Andrew Witty, UnitedHealth can not only preserve its market dominance and sustain industry-leading growth rates across most of its key segments but also enter new healthcare services markets. Witty is known as a mission-driven CEO who clearly articulates his view that providing high-quality, affordable health care services is a social good. He receives consistently high marks from former colleagues, and we believe that his leadership approach will ballast and even strengthen UNH’s already impressive management and employee ranks. The insurance and services businesses are synergistic and complementary, which entrenches United’s critical role in care financing, access, and management. This dynamic gives us confidence in the durability of United’s market leadership. United’s core capabilities across insurance underwriting, cost and clinical datasets, provider care management, and PBM assets – undergirded by an advanced IT infrastructure – bolster their competitive advantage in providing the most robust insurance benefits at the lowest cost. United is also an early adopter of the technology across a variety of care settings such as telemedicine, digital therapeutics, and continuous glucose monitoring technology for their diabetic type 2 population. This provides better tools and care to patients and gives United better visibility on patient health, which leads to better cost control via early intervention. Driven by UNH’s higher-growth businesses like Medicare Advantage (MA) and value-based care MA clinics, as well as strong visibility on growth acceleration post-Covid, we expect the company’s multiple to rise significantly as investors see a path to sustained mid-teens earnings growth. We believe the stock can double in the next three to four years as we see durability of EPS in the mid-teens supported by a high single digit FCF yield while trading in-line with the market. Q3 2021 hedge fund letters, conferences and more Private Investment: Rivian We first took notice of Rivian after its spectacular launch at the L.A. Auto Show in 2018 when it announced two beautifully designed electric off-road vehicles: the R1T truck and the R1S SUV. Rivian is the brainchild of RJ Scaringe, an engineer with a master’s and a doctorate from MIT. We had the opportunity to meet RJ in early 2020 and were deeply impressed by his charismatic vision and approach to designing a new type of automotive company. A car enthusiast with a passion to conserve the environment for future generations, RJ has built a company that is shifting consumer mindsets about what battery electric vehicles can be. The R1T, which officially launched in September 2021, has received rave reviews, with Motor Trend calling it the “future of the pickup truck.” The clean sheet, technology-focused vehicle eliminated long-accepted compromises and delivers an experience that harnesses humanity’s innate adventurous spirit in an environmentally friendly way. Recognizing that personal ownership of vehicles will give way to ride-sharing in the future, Rivian also has the ambition to be major solutions provider to centrally managed fleets. They prudently initiated a relationship with Amazon to develop a range of commercial delivery vans that leverages the same core electric skateboard platform as the R1S/R1T. Amazon has an initial 100,000 vehicle order with Rivian (the largest backlog/order for any electric vehicle company ever at the time) and is also a major investor in Rivian. As Amazon seeks to become a dominant player in logistics while being carbon neutral, we believe that Rivian will be their end-to-end fleet provider of choice. When we learned that Rivian was doing a fund-raising round in late 2020, we expressed our interest and secured a small investment. More importantly, we spent time with RJ and his team. When Rivian did a pre-IPO convert round in July 2021, we were able to participate in a more meaningful way. Rivian recently filed its S-1 and is on track to go public by year-end. Rivian stands out with a compelling brand, an excellent first vehicle, and a unique partnership with Amazon that allows them to scale quickly. They are taking full advantage of the direct-to-consumer model/digital ecosystem to attack the full lifetime revenue potential from vehicles rather than simply an upfront sale. After recently spending a full day with RJ and his team in Normal, Illinois and driving the R1T, we are confident that they are best in class in every way: vision, strategy, talent, execution, partnerships and amount/quality of capital raised so far. The R1T knocked it out of the park, and we are excited to invest with Rivian to support its mission to keep the world adventurous forever. Q3 2021 hedge fund letters, conferences and more Business Updates We recently welcomed three new investment professionals to the team. Their biographies are below: Robert Hou joined our team as Head of Insurance Solutions to develop investment strategies and manage portfolios for our insurance clients. Prior to joining Third Point, Mr. Hou was a portfolio manager at Blackstone in the Insurance Solutions business. His background includes FIG Investment Banking and Corporate Development at BlackRock, Deutsche Bank and Merrill Lynch. Mr. Hou graduated from Stanford University with a B.A. in Economics. Daniel Lee joined our Structured Credit group. Prior to joining Third Point, Mr. Lee was in-house counsel at Nomura Securities International, Inc. covering securitized products. Mr. Lee spent five years as a structured finance associate at Weil, Gotshal & Manges LLP and four years as an associate at Cadwalader, Wickersham & Taft LLP. Mr. Lee graduated with a J.D. from Washington & Lee School of Law and holds a B.A. from Binghamton University. Luana Majdalani joined our equity team as an analyst. Prior to joining Third Point, she worked at Blackstone in private equity. She started her career at Evercore Partners in its merger & acquisitions advisory group. Ms. Majdalani graduated with a Master in Financial Mathematics from Princeton University and holds a BSc in Economics from the University College London (UCL). Q3 2021 hedge fund letters, conferences and more Sincerely, Daniel S. Loeb Updated on Oct 27, 2021, 1:32 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk8 hr. 10 min. ago Related News

The UK Government Sets Out Green Commitments Ahead Of Budget

The Chancellor is laying out a series of green finance safeguards ahead of the Budget including a block on “greenwashing”. Q3 2021 hedge fund letters, conferences and more The UK has announced plans to launch a £400m package of investment through a partnership with Bill Gates for the development of green technologies. The UK government […] The Chancellor is laying out a series of green finance safeguards ahead of the Budget including a block on “greenwashing”. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more The UK has announced plans to launch a £400m package of investment through a partnership with Bill Gates for the development of green technologies. The UK government has also set out its long-awaited strategy to reach its target of net zero emissions, which includes an expansion of electric vehicles. The UK Government's Green Commitments Emma Wall, Head of Investment Analysis at Hargreaves Lansdown “Investors have been backing the green economy for some time – they haven’t waited for Rishi and Boris to make these commitments. We’ve seen flows into sustainable funds on our platform up 6,000% over the past five years. And these funds now total $2 trillion globally. There are a number of factors at play here – investors are more socially aware - the pandemic has exacerbated inequality and younger investors in particular want to tackle this. Regulatory change has created investment opportunities, and performance plays a part too. Last year funds which didn’t invest in fossil fuels outperformed the market, as energy prices crashed and green-tech companies excelled. It’s a different story of late of course, with energy prices rising rapidly, but the structural themes remain. But the popularity of responsible funds has become problematic as investment providers jump on the bandwagon, leading to accusations of greenwashing – saying you have better environmental credentials than you do. The EU has already cracked down on providers and the US has launched investigations, and now the UK is following suit. Rishi Sunak has today published new Sustainability Disclosure Requirements for fund managers which it has developed with support from the UK regulator and pension schemes and fund managers will have to "clearly justify any sustainability claims.” About Hargreaves Lansdown Over 1.64 million clients trust us with £135.5 billion (as at 30 June 2021), making us the UK’s largest digital wealth management service. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month. Updated on Oct 27, 2021, 1:56 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk8 hr. 10 min. ago Related News

Upstart airline Breeze just took home its first Airbus A220 aircraft with business class-style seats that will fly transcontinental and eventually to Europe - see inside

JetBlue Airways founder David Neeleman launched Breeze in May with a handful of aircraft and $39 fares. Now, it's taking home its first brand-new jet. Breeze Airways's first Airbus A220-300. Breeze Airways and Airbus Breeze Airways just took delivery of its first Airbus A220-300 jet, five months after the airline launched. The A220-300 can fly 3,450 nautical miles, opening up transcontinental flights and potential European service. New premium seats will be found onboard with in-seat power also available for all passengers. One of America's newest airlines is celebrating its five-month anniversary with a brand-new plane. Breeze Airways took delivery of its first Airbus A220-300 on Tuesday as part of an 80-aircraft order that will bring the airline to new heights and expand its reach well beyond the US. Built in Airbus' Mobile, Alabama facility, the A220 in Breeze's configuration boasts features including mood lighting, in-flight WiFi, in-seat power with 110v AC outlets and USB charging ports at every seat, and the largest cabin in its aircraft class.The Canadian jet type offers Breeze the perfect mix of economics and performance capabilities that will power a low-cost, long-haul route structure. A published range of 3,450 nautical miles for the larger A220 variant gives Breeze full reign over the Lower 48, with the ability to fly non-stop between any two cities between America's coasts, and then some. A transatlantic expansion is also in the works as Breeze is looking at secondary cities across the Northeast as potential stepping stones for flights to Europe. Destinations in South America may also be served from the Southeast and Hawaii from the West Coast thanks to the new aircraft's impressive capabilities, while the Embraer E190/E195 fleet that launched Breeze in May will stick to North America. Breeze Airways's first Airbus A220-300. Breeze Airways and Airbus And Breeze is already pressing Airbus to give the aircraft 4,000 nautical miles of range by adding auxiliary fuel tanks. The extra 600 nautical miles would allow for long-haul international flights from cities deeper into the US and open up Central Europe and South America flights from the East Coast.Inside the glitzy aircraftAirbus' smallest jet is intended to serve the 100-150-seat aircraft market and the larger Dash 300 variant can actually seat up to 160. Breeze showed off a low-density configuration during the delivery ceremony with just 126 seats across two cabins: a premium class and an economy class. In that configuration, a total of 36 premium seats in the airline's version of business class will stretch 13 rows, all the way back to the center of the aircraft.Customers booking a "nicest" fare will have complimentary access to the seats, which boast 20.5 inches of width and 39 inches of pitch, as well as an allowance for one carry-on bag and two checked bags, complimentary drinks and snacks onboard, priority boarding, and complimentary in-flight WiFi. Breeze Airways' first Airbus A220-300. Breeze Airways Two rows will offer 10 extra-legroom seats featuring 33 inches of pitch and 18.8 inches of width. They'll be available complimentary for those booking "nicer" fares that will also include a complimentary carry-on and checked bag, priority boarding, and a complimentary drink and snack. The remaining 80 seats will be standard economy seats, available for those booking "nice" fares for an additional fee or automatically assigned at check-in. These seats also feature 18.8 inches of width with between 30 and 31 inches of pitch, offering more space than some traditional airlines do in economy classBreeze, however, can add and reduce the number of seats in a given class of service based on demand. Neeleman is also hinting at offering lie-flat seats on the aircraft that would provide more comfort on long-haul flights. The A220 offers a 2-3 seating configuration in economy class, offering passengers a variety of choices when selecting a seat. A downside, however, is that it also offers middle seats, meaning passengers have more of a reason to pre-purchase seat assignments.Onboard WiFi will enable internet browsing and also streaming entertainment including movies and television shows. Breeze Airways's first Airbus A220-300. Breeze Airways and Airbus Pilots flying the Airbus A220 can expect a lifestyle similar to those at more established airlines. Instead of flying "out and back" in a single day, the A220 will fly lengthier routes and trips that will often require overnight stays, as the airline told Insider in April.Breeze customers won't be flying on the plane until the second quarter of 2022, once more aircraft have been delivered. Now begins the long process towards certifying the aircraft to fly passengers, as well as training crew to fly, service, and maintain the airline's new flagship. Read the original article on Business Insider.....»»

Category: topSource: businessinsider8 hr. 10 min. ago Related News

DEI trailblazers: 16 diversity executives transforming the workplace in post-George Floyd corporate America

From Nike to Google to Bank of America, Insider's top diversity execs of 2021 have led transformative equity progress under immense pressure. From Nike to Google to Twitter, here are Insider's top diversity trailblazers of 2021. American Express; JP Morgan; Facebook; Nike; Alyssa Powell/Insider The echoes of Black Live Matter protesters may have died down since the summer of 2020, but America's CEOs know the pressure to advance racial equity still hovers over them since the murder of George Floyd.Chief diversity officers were hired at record rates to shoulder the brunt of demands placed on companies shortly after Floyd's death. Indeed found that listings for diversity roles jumped 56% between September 2019 and September 2020. LinkedIn data confirmed that the summer of 2020 saw a spike in the hiring of these roles. The year 2021 was the first test to see whether companies would make real progress. These chief diversity officers - often people of color - have enacted incredible change since then. And the work they do is complicated and exhausting. They are the shepherds of what could be a new era in corporate America. Insider is proud to present its second annual list of diversity officers changing the country. Collectively, these executives are helping break barriers for hundreds of thousands of workers while also challenging their CEOs to make their policies and business practices more inclusive. Rosanna Durruthy, vice president of global diversity, inclusion and belonging at LinkedIn Linkedin's Rosanna Durruthy. Courtesy of Rosanna Durruthy Key accomplishments: A result of Durruthy's diligence, LinkedIn announced in July that it would pay the global cochairs of its employee resource groups $10,000 per year for their work, in addition to their salary. "Historically, ERG leaders take on leadership roles and the associated work in addition to their day jobs, putting in extra time, energy, and insight. And despite the tremendous value, visibility and impact to the organization, this work is rarely rewarded financially," Durruthy said. "The work of ERGs is more important than ever." This past year, LinkedIn also created the option for users to share their preferred pronouns, a big move to make the jobs platform more inclusive, especially for transgender and nonbinary professionals. LinkedIn aims to double the number of Black and Hispanic leaders and managers on its US team over the next five years. Durruthy is also focused on increasing leadership training that focuses on inclusion and diversity. In their own words: "As a leader and an LGBTQ woman of color, it's been really important for me to be in conversation with my peers and to allow them to know that I see them as being responsible for helping create the change we're all endeavoring toward."  Brian Lamb, global head of diversity and inclusion at JPMorgan JPMorgan's Brian Lamb. JPMorgan Chase Key accomplishments: This year, Lamb, Jamie Dimon, and a group of other executives deployed funds from the firm's record-making 2020 $30 billion pledge to address racial injustice. The investment aims to boost the number of Black and Hispanic homeowners, create more affordable housing, and support small businesses through loans.  In September, JPMorgan committed an additional $100 million to Black and Hispanic-led minority depository institutions and community-development financial institutions. A month later, JPMorgan announced to Insider it was pressuring the businesses it works with to increase spending with Black- and Hispanic-led companies. Business professors and economists predicted the bank's efforts would have a ripple effect in the economy, boosting capital spent on minority-owned businesses.  In their own words: "Patience isn't a virtue for me. I'm inspired to live with purpose and positively impact the lives of others — to be bold in our thinking and hold myself and others accountable to both their personal and professional responsibility to drive sustainable change."  Melonie Parker, chief diversity officer at Google Google's Melonie Parker. Google Key accomplishments: With efforts overseen by Parker, Google added diversity, equity, and inclusion materials to orientation for all new hires along with training for managers on how to promote inclusion of employees who are neurodiverse, or people with different ways of brain processing, such as people with ADHD or autism. Google also made significant strides in hiring diverse candidates. It increased Black representation in its US workforce by nearly 20%, from 3.7% to 4.4% and increased Hispanic hiring by a third, from 6.6% to 8.8%, according to the company. Parker also interviewed former first lady Michelle Obama at Google's first Women of Color Summit aimed at promoting mentorship, sponsorship, and career development for women of color at the company.  In their own words: "I believe we need to further expand the horizon of what we do to support employees of color. To me, that means clearer pathways to leadership, mentorship opportunities, more safe spaces both on campus and virtually, and also more DEI exercise for white employees, because it is truly everybody's responsibility to create a welcoming and gainful environment for underrepresented employees." Lesley Slaton Brown, chief diversity officer at HP HP's Lesley Slaton Brown. HP Key accomplishments: Over the past year, Lesley Slaton Brown helped the tech giant increase the number of Black executives at the vice president level and up by 50% and the number of female executives by 32%. Additionally, over 60% of new US hires were from underrepresented groups, including women, people with disabilities, people from underrepresented races and ethnicities, and military veterans.In their own words: "My mantra, is 'Everyone in!' Everybody, especially leaders, must understand the business value of DEI. It's integral to drive meaningful change in the short term and long term." Tim Dismond, chief responsibility officer at the commercial real-estate firm CBRE CBRE's Tim Dismond. CBRE Key accomplishments: As a result of Dismond's efforts, over 50% of the company's promotions and nearly half of new hires in the past year were women, people of color, LGBTQ people, or people with disabilities.He also led an effort to increase spending with suppliers owned by people of color, women, or other historically marginalized group. Across 2020 and 2021, the company is projected to spend more than $1 billion with diverse suppliers. In their own words: "As a Black man, I'm not immune to the undertones of bias in professional settings, and while my experience is not unique, by sharing and showing vulnerability I can effect change and help others feel safe to share their experiences and perspectives."   Dalana Brand, VP of people experience and head of inclusion and diversity at Twitter Twitter's Dalana Brand. Twitter Key accomplishments: Brand has pushed Twitter to further diversify its leadership over the past year. Representation of women in leadership roles increased from 35.4% to 37.7% and Black representation in leadership positions increased from 5.6% to 7.3%.  Brand was also influential in Twitter announcing that employees have the option to work from home indefinitely. The move has helped attract and retain talent for whom working from home is best, such as working parents or people with disabilities.In their own words: "It's not enough for us to simply have diverse teams. We cannot check the box and keep on with our own careers because what we know is that diverse folks will remain excluded from opportunity unless we are intentional about inclusion."  Sonia Cargan, American Express' chief colleague inclusion and diversity officer American Express' Sonia Cargan. American Express Key accomplishments: This year, Cargan made pay equity a top priority. AmEx investigated salaries across gender, race, and ethnicity and made changes to correct any discrepancies, achieving 100% pay equity for colleagues across gender globally and across race and ethnicity in the US. Cargan said the company is working to achieve pay equity across race and ethnicity globally.Cargan was also instrumental in AmEx creating a new office of enterprise inclusion, diversity, and business engagement that works directly with the company's executive committee to weave DEI practices into business strategies. In their own words: "We understood that to drive real change, we needed to further intensify our focus and make inclusion and diversity the heart of not only our workplace but how we do business."  Tara Ataya, chief people and diversity officer at Hootsuite Hootsuite's Tara Ataya. Hootsuite Key accomplishments: After a powerful conversation with other Hootsuite leaders last year about how to better support employees, Ataya guided the company's redesign of its benefits package to make it more inclusive. The company now covers gender-affirmation surgeries, fertility treatment, and financial-counseling services under its health and employee-assistance plans, benefits that are highly coveted and not often offered. Hootsuite also expanded its mental-health counseling services to include more therapists of color. The company also conducted a third-party pay equity report and achieved pay equity. In their own words: "It's about time we see this level of change. Greatness comes from being challenged to be better and do better. I think it is so important that organizations understand the importance of and the business case for DEI in the workplace." Maxine Williams, chief diversity officer at Facebook Facebook's Maxine Williams. Courtesy of Maxine Williams Key accomplishments: Because of Williams' leadership, Facebook has seen a significant increase in women in technical roles (from 15% in 2014 to 24.1% in 2020), as well as Black people in nontechnical roles (from 2% in 2014 to 8.9% in 2020). In 2020, Williams helped Facebook achieve a 38.2% increase in Black leaders, according to the company's latest DEI report. In addition, Williams built a diversity advisory council, a group of 18 employees from diverse backgrounds across the globe who meet quarterly to consult on the company's content policies, products, and human-resources programs.In their own words: "Build DEI into business processes and products from day one. Don't wait for the right time. That time was yesterday." Jarvis Sam, Nike's vice president and head of global diversity, equity, and inclusion Nike's Jarvis Sam. Nike Key accomplishments: Sam drove Nike's plan to increase representation of historically marginalized communities at the leadership level. Over the past year, he helped the company increase representation of women and people of color and at the director level and above by 2 percentage points. Women now make up 43% of directors and above, and people of color make up 27%. Sam also created new coaching programs for vice presidents across all departments to gain new skills, including skills around DEI. Some 56% of the 2020 participants were promoted to new roles within the year.  In their own words: "We have to lift as we climb. If we're not bringing others along with us, we aren't doing our job right." Toni Thompson, VP of people and strategy at Etsy Etsy's Toni Thompson. Etsy Key accomplishments: Over the past year and a half, the company has doubled down on its efforts to hire and promote more people of color thanks to pressure from Thompson. Black, Latino, and Native American hires made up 20% of new hires in 2020, and Black, Latino, and Native American people now comprise 12.2% of Etsy's total workforce, according to the company's most recent diversity report. In addition, employees from these underrepresented communities now comprise 8.7% of Etsy's leadership. The company is on track to reach its goal of doubling the percentage of Black, Latino, and Native American employees by 2023.Thompson helped Etsy expand its mentorship opportunities for women and people of color in engineering. She also launched a third-party pay-equity analysis, which found no discrepancies in pay based on race, ethnicity, or gender, consistent with their first report conducted in 2018. In their own words: "It's very natural for companies to be laser-focused on the financials and goal achievement that influence the financial health of the company. There are many HR and DEI efforts that support the top and bottom line, but it's hard for people to make those connections. I'm thankful the executive team at Etsy gets it, but many leaders at other companies don't."  Kara Helander, managing director and chief diversity, equity, and inclusion officer at The Carlyle Group The Carlyle Group's Kara Helander. The Carlyle Group Key accomplishments: In early 2020, Helander led the charge at the private-equity firm to set a new goal of having 30% of board directors at all of its portfolio companies hail from historically underrepresented groups within two years of ownership. The head of DEI also developed and implemented a new set of criteria for assessing employees up for promotion to managing director, with individuals taking part in an assessment that evaluated their skills in inclusive leadership and management.  In addition, she implemented a change that DEI will be integrated into compensation as part of managers' formal year-end assessments going forward. Helander wants to continue diversifying the financial firm. In 2020, 63% of people hired in the US were women or ethnic minorities, according to the company. In their own words: "Each and every person in an organization can contribute to advancing diversity and inclusion. Accountability is key to sustaining positive change."  Lorie Valle-Yanez, head of diversity, equity, and inclusion at MassMutual MassMutual's Lorie Valle-Yanez. MassMutual Key accomplishments: Valle-Yanez shepherded MassMutual's investments in racial justice to the tune of more than $200 million, with $150 million going to diversifying the businesses the company works with and $50 million to spur job creation among diverse entrepreneurs in Massachusetts.The financial company also released its first public DEI report, which includes a detailed breakdown of its leadership and workforce demographics. In their own words: "The biggest change since George Floyd has been the increased engagement and ownership coming from so many people in the company who are raising their hands and wanting to be part of the change."  Antoine Andrews, chief diversity and social-impact officer at Momentive (formerly SurveyMonkey) Momentive's Antoine Andrews. Momentive Key accomplishments: Andrews was a key figure in Momentive's recent decision to financially recognize employees who lead the company's ERGs, though the company declined to disclose by how much. Working with CEO Zander Lurie, Andrews also shaped Momentive's initiative calling on its suppliers and vendors to increase diversity in their leadership. In their own words: "Stamina is the characteristic most needed to combat inequity, racism, and all other negative 'isms.' Those of us who do this work can easily get tired, frustrated, and discouraged when progress isn't made or is happening slowly. Change requires us to be in shape mentally and physically."  KeyAnna Schmiedl, global head of culture and inclusion at Wayfair Wayfair's KeyAnna Schmiedl. Lyndsay Hannah Key accomplishments: Schmiedl helped Wayfair conduct a third-party pay-equity survey and worked to achieve pay equity for all 16,000 employees across race, disability status, and gender and sexual identity. In addition, Schmiedl led the charge to tie executive compensation to DEI goals.She also helped diversify Wayfair's leadership. The company increased the share of women in leadership positions by 7 percentage points in six months from 25% at the end of the 2020 fourth quarter to 32.8% at the end of June. The company also hired its first two directors of Indigenous descent. In their own words: "I am more consistent in being authentically me from meeting to meeting, interaction to interaction, and I've experienced more folks in the workplace bringing more of their humanity to everyday interactions. I'm having more raw conversations."  Cynthia Bowman, chief diversity and inclusion and talent acquisition officer at Bank of America Bank of America's Cynthia Bowman. Bank of America Key accomplishments: Bowman played a key role in producing Bank of America's $1 billion, four-year commitment made in June 2020 to address underlying economic and social disparities that were exacerbated during the pandemic. In March, Bowman, CEO Brian Moynihan, and other executives expanded this commitment to $1.25 billion over five years to further support investments to advance racial justice through grants to historically Black colleges and universities, Hispanic-serving institutions, and civil-rights organizations. Bowman has helped the financial giant deepen connections with HBCUs and HSIs over the past year and a half. Because of these efforts, the bank's 2021 entry-level class is at least 50% people from historically marginalized backgrounds.  In their own words: "There is no question that achieving strong operating results on equity — the right way — starts with our teammates. Our diversity makes us stronger, and the value we deliver as a company is strengthened when we bring broad perspectives together to meet the needs of our diverse stakeholders."  Read the original article on Business Insider.....»»

Category: topSource: businessinsider8 hr. 10 min. ago Related News

Van Jones on his new podcast in partnership with Amazon Music and how he plans to implement a $100 million gift for charity from Jeff Bezos

Van Jones spoke to Insider about his new podcast, "Uncommon Ground with Van Jones," which debuted this week in partnership with Amazon Music. Van Jones. Leigh Vogel/Getty Images Van Jones spoke to Insider about his new podcast, "Uncommon Ground with Van Jones," which debuted this week in partnership with Amazon Music. Jones also discussed his work in criminal-justice reform and the award he received from Jeff Bezos that included a $100 million gift for non-profit recipients of Jones' choosing. Van Jones, the CNN political commentator, activist, and entrepreneur, spoke to Insider last week in a phone interview tied to the release of his new podcast, "Uncommon Ground with Van Jones," which debuted Wednesday in partnership with Amazon Music."Uncommon Ground" finds Jones in conversation with notable names and grassroots activists "in search of unifying solutions to our country's biggest problems," with topics ranging "from climate change, to prison reform, to voting rights, to spiritual evolution, to cancel culture," according to a release. The initial slate of guests includes Deepak Chopra, Chef José Andrés, will.i.am, Sarah Silverman, Bishop T.D. Jakes, Andrew Yang, and S.E. Cupp.In our interview, Jones discussed the podcast in relation to his history of work in criminal-justice reform, including his founding and continued presence on the Reform Alliance and his efforts to help pass the bipartisan legislation of the First Step Act in 2018. He also alluded to his plans to implement the "Courage and Civility Award" that he received from Amazon founder Jeff Bezos in July, which included a $100 million to gift to non-profit organizations of Jones' choice.This interview has been lightly edited and condensed for clarity.How did this come together, the podcast and the partnership behind it?You know, I've been fascinated by the podcast space as a place for a deeper and more intimate conversation, had the opportunity to do a podcast with CNN called "Incarceration, Inc.," and really enjoyed that experience. And I just wanted to have broader, deeper conversations in the podcast space. Amazon is in the process of ramping up this capacity, in this area, and I'm excited to be on board. How do you approach making topics like climate change and voting rights compelling enough to engage the average or uninterested listener? Sort of the question of our times.I think people are very interested in these topics. I think that they are just worn down by the tone and the tenor of the discussion. I think it's kind of like when you have two neighbors fighting over an important topic. You're sick of the fight, but you're not sick of the topic. How are we going to give our kids a livable planet? How are we going to make sure that democracy works better for everybody? How can we make sure that people have opportunities in this new kind of high-tech economy? Those are things that people are thinking about and talking about and worrying about all the time. I just think what we have to do is make sure that we are going deeper than just the soundbites and the tweets and the talking points. And that's really what "Uncommon Ground" is all about.Also, we're going to be hearing from new voices, all these amazing grassroots leaders, who I get a chance to meet when I'm on the road, working on political causes or speaking in different communities. These folks never get heard from, and they are so hopeful and smart and tough. So I think having new voices is going to be important and hearing from new voices. And then hearing from more familiar voices, but talking about things in a deeper, more heartful way. So there's going to be new voices in the conversation. There's also gonna be new perspectives from familiar voices in the same conversation.What's your ideal guest, apart from who you've listed? Who do you seek out for this type of a format?Well, I'm really proud of the people we've already got. I mean, we've got some of the biggest humanitarian voices on the planet, whether you're talking about Chef José Andrés, or whether you're talking about Deepak Chopra or T.D. Jakes. We also have people that are not as well-known, but grassroots activists, like Malkia Cyril and LaTonya from Philadelphia. And then, as we go forward, I'm hoping that that people recognize us as a very good place to come and have a deeper and more heartful conversation. And I think people may be surprised at some of the voices that we pull on overtime. Jeff Bezos (C) with Chef José Andrés (L) and Van Jones in July, after announcing a $100 million award for charity to both Andrés and Jones. Joe Raedle/Getty Images I wanted to say, congrats on the award from Jeff Bezos.Oh, well, thank you.How does one go about strategizing the implementation of a $100 million gift for charity?Uh, very carefully. [Laughs].[Laughs].[Laughs]. You know, I was blown away that Jeff Bezos and Lauren Sanchez decided to create this new award in the first place, and then to have me be one of the first two recipients. Over the past 30 days, since we've only had the grant for 30 days, I've been in very deep conversation and dialogue with experts across a whole range of different fields of endeavor. And we have a 10-year horizon to figure out how to invest and distribute the funds. But look, here's the thing. I've always been fighting for the same basic causes. I've been trying to disrupt prisons and pollution and poverty for my whole career. But I've never had enough philanthropic capital to put behind my ideas or the solutions that I think are most promising.And so now that's different. It's a crazy experience to go from being somebody who's been asking for grants for 30 years to being somebody who is in a position to invest philanthropically. We'll have announcements to make in 2022, but I am taking my time. I'm not in a rush. You know, this is a once in a lifetime opportunity. We call this "the miracle money," and I want every penny to make a miracle. That's the standard. If I can 10x the impact, I want to be able to do that. So, every penny needs to make a miracle. And that's what we're focused on. By the way, the very first episode of the podcast, José Andrés and I talk about, in more depth and detail, what the experience is like. If anybody's interested in how the first two recipients of this award are thinking about it, should definitely check out episode one of the podcast.I, uh, will do. Going back a few years here, and in relation to your past efforts, what did you see as the key to the bipartisan effort behind the First Step Act?There are some areas where the two parties are just not going to agree and should therefore just battle it out, but that's not the vast majority of issues. If you take an issue like criminal justice, everybody understands that the liberals have our stake of the fight. Progressive are very passionate about social justice and racial justice. So the incarceration industry really offends progressive values, but there are conservative values that the incarceration industry also offends. Conservatives don't like big, staled, unaccountable government bureaucracies that eat up a ton of money and produce bad results. Well, that's the prison system to a T. Right-wing libertarians don't like the government gobbling up more and more people liberties. That's what the prison industry does every day. And there are a lot of conservative Christians who wonder, "Where is the redemption? Where's the second chances?" How can a fallen center rise again, if the prison industry just destroy people's lives and brands them forever as being unemployable and unworthy?And so it's when you find those areas where liberal passion for justice can line up with conservative passion for liberty, you can build a Liberty & Justice For All Coalition, and that's what we did. You had the strongest progressives and the strongest conservatives voting together during the Trump administration to pass a bill that by some calculations has helped 20,000 people come home from federal prison much earlier than they would have. That's the kind of bottom-up bipartisanship that I think we need more of. And by the way, we talk about that kind of stuff on the podcast. Also, we talk about climate solutions, which you mentioned earlier. Everybody knows that progressives are concerned about climate because of concern about future generations and species being loss. What people don't talk about is the fact that you have a bunch of red state farmers and ranchers who are getting pummeled by floods and fires and droughts, and who are very close to the land. And they know that the climate is changing rapidly and they would be very open to certain types of climate solutions, especially those that would pay them more money to capture and sequester carbon in the soil with more advanced agricultural techniques.So I spend a lot of time looking for those unlikely overlaps of interests. And I call those places, where you're shocked and surprised, and you're like, "Wait a minute. These two groups that you think would be far apart actually are just putting the emphasis emphasis on a different syllable, but they're saying the same thing." I call those areas of unexpected overlap "Uncommon Ground." And when you find them, whether it's on addiction or criminal justice or climate, or youth opportunity, I think we should go deep there and pull as many people into those conversations as possible. And that's the point of the podcast. Jay-Z, Van Jones, Robert Kraft, and Michael Rubin at a Reform Alliance event in 2019. Kevin Mazur/Getty Images What has your participation in the Reform Alliance meant to you, and what do you see coming from your continued role in the organization?It's just an extraordinary opportunity to work with people who have massive hearts, big brains, and big wallets, who want to make a difference. And I learn from each and every board member I every time I'm in communication with them. The level of concern and passion that those board members have is really mind-blowing. As well-known as they are, they do a lot of work behind the scenes that they deliberately don't want acknowledged, 'cause they don't want to create a feeding frenzy every time they show up. But, you know, the number of governors and senators and mayors that have gotten phone calls from a Reform Alliance board members I think would shock a lot of your readers. And then also they've built an unbelievable team of policy experts and advocates that have been able to pass bills in eight states, 13 bills and eight states, in just a two year period. That's a pretty, pretty fast clip.Some people, I think, thought this was going to be a vanity project, but it's turning out to be a much more impactful organization already than some of the skeptics were suggesting. And the issue that was the Reform Alliance takes on, probation and parole reform, really has not had a national champion until we launched. And two thirds of the people who were under the control of the criminal justice system are not in prison or jail. They're on either probation or parole, and their lives can be a living hell because it is so easy to be sent back to prison. If you show up late to a meeting with your parole officer or you get caught talking to someone who has a criminal record, and you're not doing anything, you can be back in prison and lose your job or your apartment and custody of your kids. So every day is just an incredibly anxiety-provoking nightmare and that level of stress doesn't make any community better or safer. So we're very proud that we are beginning to help to change that system, to make it a lot more humane, a lot more effective. ...Look, my view about this whole situation that we're in is that the divisive voices in our country, no matter what political ideology or race, are just getting way too much attention. And the unifying voices, the problem-solving voices, the healing voices are just getting way too little attention. And I think now's the time for people who've got really great ideas to solve the problems, to have a platform. And that's really what "Uncommon Ground" is all about. It's a platform for people who are exciting people, who are interesting people, who also are about that business of solving problems, to finally be heard.Read the original article on Business Insider.....»»

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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Even as Coupang provides support to the Korean economy, Wall Street doesn't appreciate CPNG stock - but this presents a buying opportunity. The post Coupang Deserves to Trade at $50, So Get It While It’s Cheap appeared first on InvestorPlace. More From InvestorPlace Stock Prodigy Who Found NIO at $2… Says Buy THIS Now Analyst Who Found Microsoft at $0.38 Names #1 Pick for the AI Boom America’s #1 EV Stock Still Flying Under the Radar.....»»

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